You Received a Notice From The IRS – What Does It Mean?
Do not panic at first. Make sure to contact Omni Tax Help to help you understand what your notice means. When the IRS is looking to contact you, they will send a notice or letter to your last known address on file. If you have not filed a tax return in quite some time, then the notice may go to the last address listed on your tax return.
Make sure that you update your information with the IRS each year. Any letter from the IRS may be a frightening letter to receive but with the right help it does not have to ruin your life. Sending out notice is the most common way for the IRS to contact you. They will rarely call you by phone. The IRS will never try to contact you via email or on any type of social media program either.
Each Notice Will Address A Specific Issue On Your Account
If you do need to call the IRS, the notice you receive will contain a specific letter number and contact phone number. The specific letter number can be found in the bottom or top right-hand corner of the notice. This number will be used as a reference for your account. Make sure to keep a copy of all notices that you have received, whether past or current, when placing a call to the IRS. Having an original copy of your most recent tax return can be a useful reference as well.
If you have received a notice from the IRS,
do not ignore it.
The reason is for the IRS to reach out to you will be addressed in the notice. Read the notice carefully and take the steps needed to correct the issue. If you are unaware of what the notice means then you should contact a tax attorney, enrolled agent or other tax experts as soon as you can. A notice will be sent when the IRS is trying to clarify an issue at hand. Most of the time the notice can contain a question about a tax return that you just filed. It can have info saying that you are due a bigger or smaller refund than expected. The notice can also make you aware of any delays that may have happened in the processing of your original return.
The IRS may also be looking to verify your identity. When there is a case of identity theft, you will receive a notice labeled, CP01A, with a specific pin and phone number that you must use. The specific PIN is also known as an Identity Protection Pin (IP PIN). This IP Pin will consist of a six-digit number that will be given exclusively to you. When you file a tax return in the future you will be required to enter that pin into your tax return before submitting. By issuing an IP Pin, it helps prevent the abuse of a taxpayer’s social security number on a fake federal income tax return. This IP PIN will help the IRS verify that you are the correct person filing the tax return.
When The IRS Has Sent Out a Series of Five Notices
A CP90 is a formal letter that the IRS will seize your assets if you do not pay. You will be given 30 days from the date of this notice to respond before your income, retirement benefits, bank accounts or other assets are at risk. The IRS can even levy 15% of your social security income. If this is the case and that is your only type of income, then it will be listed in a CP91 letter. You must be aware of the deadlines included in the notices to avoid aggressive collection actions such as liens or levies taking place on your account. Responding on time can also reduce the amount of interest and penalties that will be added to your account. A timely response can also ensure your Appeal rights to any decision made by the IRS. If you disagree with the information that is listed on the final notices discussed above, file an Appeal.
How To Request an Appeal
Although most of the notices issued by the IRS can be terrifying, there are numerous ones that will be sent out to advise you of the status that your account is in. An IRS letter 2273C can advise you that your Installment Agreement request has been accepted. This letter will contain important terms and conditions of your agreement that must be followed. If a request for an Installment Agreement was made and additional info is needed to approve the request, the IRS will issue out a 2272C letter. This notice will also be sent out when the Installment Agreement request has been denied. There is usually a 10-day deadline listed on the notice for you to respond. If the deadline date passes and no contact is made, then the IRS will continue with enforcement action such as liens and levies on your account. If your account has been placed in a currently not collectible status, the IRS will issue a CP71, Annual Balance Due reminder notice. This notice will detail out the balances that are still on your account while in a currently non-collectible status. The CP71 is more of an informative notice. There will not be a deadline included in this notice.
Our Experts At Omni Tax Help will Support You
If you are unable to pay the full balance due, then confirm that an arrangement is in place. Omni Tax Help is here to guide you in resolving your past-due federal tax debt and make sure that you are educated on what needs to be done so that you will not owe money to the IRS or State government in the future.